Question

1. Use the appropriate items from the following list to prepare in good form Bing Corporation’s income statement for the year ended December 31, 2017.

All values are in $1,000s

Accounts Receivable                           350

Accumulated depreciation                  205

Cash                                                    30

Cost of Goods Sold                            300

Depreciation Expense                  55

General & Administrative Expense 95

Interest Expense                                  30

Common Stock Dividends                 10

Sales Revenue                                     795

Stockholders’ Equity                          265

Net Income                                         245

Answer 1

Ans.	BING CORPORATION
	Income Statement
	Particulars	Amount
	Sales Revenue	795
	Less: Cost of goods sold	-300
	Gross profit	495
	Less: Operating expenses:
	Depreciation expenses	-55
	Administrative and general expenses	-95
	Operating income (EBIT)	345
	Less: Interest expenses	-30
	Earnings before taxes	315
	Less: Income taxes	-70
	Net income	245
	*Income taxes      =       Earnings before tax - Net income
		315 - 245
		70